Interest fee of the federal government has elevated to three.1% of the GDP to Rs 7.31 lakh crore in 2021-22, Minister of State for Finance Pankaj Chaudhary instructed the Lok Sabha on Monday. Interest paid on public debt throughout 2014-15 stood at 3.27 lakh crore or 2.6% of the GDP, he stated in a written reply.
During 2014-15, the overall central authorities liabilities stood at Rs 62.44 lakh crore or 50.1% of GDP.
This elevated to Rs 138.88 lakh crore or 58.7% of GDP on the finish of 2021-22, he stated.
The Centre’s debt is projected to hit 60.2% of the GDP within the present fiscal to Rs 155.33 lakh crore, he stated in reply to a different query.
The mixed state and central authorities liabilities elevated from Rs 76.27 lakh crore (61.2% of GDP) in 2014-15 to Rs 195.49 lakh crore (82.6% of GDP)
As per the revised Fiscal Responsibility and Budget Management (FRBM) Act the federal government would endeavour to make sure that the overall authorities debt doesn’t exceed 60% of GDP and the Central Government debt doesn’t exceed 40% of GDP by the tip of the monetary 12 months 2024-25.
In 2020-21, the Central Government debt elevated by greater than 9 share factors of GDP over the earlier 12 months’s debt primarily on account of the COVID-19 world pandemic, which vastly disrupted projections of the Government’s public funds, together with a contraction in GDP/denominator, he stated.
The Government has introduced its dedication to scale back the fiscal deficit to a degree under 4.5% of GDP by FY 2025-26.
Increasing the buoyancy of tax income by way of improved compliance, monetisation of belongings, bettering effectivity and effectiveness of public expenditure and many others. are the vital measures initiated by Government to regulate the fiscal deficit and the debt, he stated.
The danger profile of the Government’s debt stands out as secure and prudent when it comes to accepted parameters of indicator-based strategy for debt sustainability, he stated.
“The Government debt is held predominantly (about 95%) in domestic currency. Outstanding external debt is financed by multilateral and bilateral agencies at concessional rates,” it stated.
Debt Management Strategy which revolves round three broad pillars primarily low price, danger mitigation and market improvement for Government securities has been put in place, he stated.